Once again, a minimum wage increase is being considered by Congress.  In 1996, a Republican-controlled Congress hiked the minimum wage by 90 cents over two years.   Indeed, since the mid-1970s, Republicans, who supposedly respect markets and small business, have signed off on minimum wage increases for1975, 1976, 1990, and 1991 while holding the White House, and for 1996 and 1997 while in the majority in Congress.

Date  WageMinimum 
1/75 $2.10
1/76 $2.30
1/78 $2.65
1/79 $2.90
1/80 $3.10
1/81 $3.35
4/90 $3.80
4/91 $4.25
10/96 $4.75
9/97 $5.15

This year, Democrats, led by the Clinton White House, Massachusetts Senator Ted Kennedy and Michigan Rep. David Bonior, are proposing a two-year increase of $1 to $6.15 per hour.  Given the fact that a solid majority of Democrats are controlled by big labor, this isn't too surprising.

What is the response by the House Republican majority?  Well, North Carolina Rep. Cass Ballenger says, "I'm practical enough to know its going to happen," and therefore is looking to package a minimum wage increase with some pro-business measures.  In contrast, New York GOP Rep. Jack Quinn is getting in a bidding contest with Democrats by reportedly advocating $1 increase over three years, with the minimum wage set to increase with inflation thereafter.

Any increase in the minimum wage raises costs for small businesses, and takes a heavy toll on those it supposedly is going to help-i.e., low-skilled, low-income, and young workers-by pricing them out of the labor market.  Placing the minimum wage on automatic pilot by allowing it to increase annually with inflation would do severe damage to the U.S. economy.  Particularly when we hit a slowdown, recession or worst of all, stagflation (inflation combined with an economic slowdown), labor market flexibility would be lost, unemployment would skyrocket, and welfare rolls would vastly expand.

The GOP seems to be waving the surrender flag on the minimum wage in the House, so it may be left to Republican Senators to protect low-skilled workers, small businesses and the economy.